Subhash, Sonipat V. ITO,Ward-4, Sonipat

ITA 76/DEL/2023

AI Insights

The case involves an appeal by Subhash, the proprietor of Subhash Trading Co., against the order of the Commissioner of Income-tax (Appeals), Delhi, which confirmed the additions made by the Assessing Officer under Section 144 of the Income-tax Act, 1961. The additions were related to unexplained cash deposits of Rs.39,98,500 during the demonetization period and issues concerning agricultural income and expenses related to exempt income. The primary contention in the appeal was the dismissal of the initial appeal by the CIT(A) for non-prosecution, as the assessee failed to respond to various notices. The ITAT found merit in the assessee's request for a proper opportunity to present his case and thus decided to remit the matter back to the Assessing Officer.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113606 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 10-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-01-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIKITA GUPTA
• Keywords: Opportunity of being heard
• Section: 144; 142(1); 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH :G: DELHI) BEFORE SHRI C.M. GARG, JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 76/Del/2023 Assessment Year: 2017-18 Subhash, Prop. Subhash Trading Co., Shop No.36, Anaj Mandi, Kharkhoda, Sonipat, Hr. PIN: 131001 (PAN:BBBPS4682P) Vs. ITO, Ward-4, Sonipat (Appellant) (Respondent) Present for: Appellant by : Ms. Nikita Gupta, Adv. Respondent by : Shri Anuj Garg –SR. DR Date of Hearing : 11.09.2023 Date of Pronouncement : 11.09.2023 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of learned Commissioner of Income-tax(Appeals), Delhi, Appeal No.CIT(A), Rohtak/10643/2019-20 dated 20.12.2022 against the order under Section 144 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 17.12.2019 passed by ITO, Ward-4, Sonepat for the assessment year 2017-18. 2 ITA No.76/Del/2023 Subhash, Sonepat- AY: 2017-18 2. At the outset, we take up ground no.2 raised by the assessee which is in respect of dismissing the appeal by the learned Commissioner of Income-Tax(Appeals) for non-prosecution and not providing proper opportunity of hearing to represent the case and file required replies. 3. Brief facts of the case are that assessee filed his return of income on 15.02.2018, reporting total income of Rs.9,34,520 along with agricultural income of Rs.5,33,221. Learned Assessing Officer in the course of assessment proceeding issued notice under Section 142(1) and fixed the case for hearing on four different occasions to inquire upon deposit of cash of Rs.39,98,500 during the demonetization period. Learned Assessing Officer noted that assessee failed to give any explanation about the nature and source of cash deposited in his bank account. He completed the assessment by treating the amount of Rs.39,98,500 as unexplained money under Section 69A of the Act and added it to the total income. Learned Assessing Officer also made addition in respect of agriculture income and expenses relating to exempt income. Aggrieved, assessee went in appeal before the learned Commissioner of Income-Tax(Appeals). 4. Learned Commissioner of Income-Tax(Appeals) noted that assessee has not effectively pursued the appellate proceedings and failed to respond to various notices issued by his office. He, thus, proceeded to 3 ITA No.76/Del/2023 Subhash, Sonepat- AY: 2017-18 dispose of the appeal on the basis of material on record and concluded in confirming the additions made by the learned Assessing Officer. Aggrieved, assessee is in appeal before the Tribunal. 5. Before us, learned counsel pleaded to restore the matter back to the file of learned Assessing Officer by giving an assurance that necessary compliances will be made in support of the claim of the assessee once proper opportunity of hearing is granted to the assessee. Learned Senior DR did not object on the prayer made by the learned counsel. Considering the facts and the circumstances of the case, as well as the assurance pleaded by the learned counsel, we find, in the interest of justice and fair play to remit the matter back to the file of the learned Assessing Officer for de novo assessment. We direct that the assessee be given reasonable opportunity of being heard and to make the necessary submission in support of his claim. We also direct the assessee to be diligent in attending the hearing fixed by the learned Assessing Officer and cooperate for the expeditious disposal, failing which the learned Assessing Officer may proceed to complete the assessment in accordance with the provisions of law. Accordingly, ground taken by the assessee is allowed for statistical purposes. 6. I n the result, appeal of the assessee is allowed for statistical purposes. 4 ITA No.76/Del/2023 Subhash, Sonepat- AY: 2017-18 Order is pronounced in the open court on 11.09.2023. Sd/- Sd/ (C.M. Garg) (Girish Agrawal ) Judicial Member Accountant Member Dated: 11 th September, 2023 *Mohan Lal* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR: ITAT By Order Assistant Registrar ITAT, Delhi Benches, New Delhi